Categories: Exchange

Binance Apologizes to the Steem Community; Unveils a DPoS Vulnerability

Binance cryptocurrency exchange has garnered critical acclamation from the community owing to its take on the recent hostile takeover of the Steem blockchain network. The renowned crypto exchange has issued multiple apologies and statements concerning the takeover event and its involvement in aiding Tron leader, Justin Sun, in overthrowing the governance of the Steem ecosystem.

Recently, Justin Sun, along with several major crypto exchanges, executed a hostile takeover of the Steem blockchain only after the latter’s acquirement by Tron two weeks ago. The top-rated exchanges such as Binance, Huobi, and Poloniex took active participation in the takeover by staking Steem assets held in their custody and delegating the power of votes to the account that was purportedly controlled by Justin Sun. The reports suggest that Justin conducted the entire event to consolidate power over the blockchain network.

The sudden step of the Tron spearhead, Justin Sun, triggered the Steem community members in a big way. “The Steemit Inc ninja-mined stake is a special case, as up to this point it has been clearly declared on many occasions as earmarked solely for the development of the Steem ecosystem, and to be non-voting in governance issues,” read the letter issued by witnesses and major stakeholders of the Steem network.

“Unfortunately, the Witnesses’ decision created a need to reclaim the stake and vote in new witnesses to usher in new policies for a healthier ecosystem and community,” read the statement released by TRON.

According to the reports, in the light of the incident, Binance has withdrawn its vote and has kickstarted a power-down of the investor funds that were staked during the takeover process. Though the exchange team has lent out apologies for its participation, the words used by the team are so well placed that it hardly raises a question on them. In its statements, the exchange denies to take on any blame at all while turning the tables towards Justin for the entire chaos. Changpeng Zhao, the CEO of Binance, stated that whatever happened was due to lack of understanding when he signed off on the hard fork, powerup of STEEM and installment of fake witnesses.

Interestingly, the apologies cannot equalize the fiasco that has already been created, as it was impossible to execute the takeover without Binance’s involvement. If there had not been support from the participants, Steem would have never had Justin rule the entire blockchain network with 20 fake witness accounts and the issue would have been solved through private meetings with Tron and Justin.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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